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GBP/USD: How Will Bear Gap Continue?

Published 09/11/2014, 03:29 AM
Updated 12/12/2023, 05:55 AM

GBP/USD: bear trend to likely continue AFTER bear gap is closed

A better bounce effort Wednesday after the aggressive sell off thus far this week and for September leaves the bias higher Thursday (maybe Friday too) for a close of the Monday bear gap, 1.6234-83.

However, we still look for a resumption of bear pressures, likely after a gap close, to aim back lower through mid-month.

The prior gap through the 38.2% retrace of the entire 2013-14 up leg at 1.6285, and chart supports 1.6252/20 leaves the bias still lower to the 50% longer term retrace at 1.6005, psychological 1.6000 and the 1.5854 weekly swing low from Q4 2013.

WHAT CHANGES THIS?

Above 1.6283 eases bear risks; through 1.6342 signals a neutral tone, only shifting positive above 1.6500.

Daily GBP/USD Chart

Weekly GBP/USD Chart

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